Search results for " Convergence"

Three essays on economic resilience and regional disparities

2017

Socio-economic Disparity problems and Convergence Policy in the EU States

2016

The purpose of this paper is to investigate socio-economic development condition and convergence evaluation in the EU-28 states in the context of the EU policy goals. The arm of this research is to estimate socioeconomic disparities and convergence problems in the European states by applying real valuations of well-being situations and economic development challenges in the EU member states. The research methodology is based on the European Commission legitimate documents application and socio-economic strategies, on the convergence theory and convergence scenario calculations and the socioeconomic forecasts analysis in the EU states. This research presents information about different socio…

Nonlinear economic growth: Some theory and cross-country evidence

2007

Abstract This paper aims to test the existence of different growth regimes, that is of different relationships between growth rate and income level. We propose a simple nonlinear growth model and test its empirical implications by estimating Markov transition matrices and stochastic kernels. We show that growth is indeed nonlinear: a first phase of slow or zero growth is followed by a take-off and, finally, by a phase of deceleration. We discuss the relevance of these results with respect to the issue of convergence and reversibility of development, in the light of models of structural change and technological diffusion.

Productivity Polarization and Sectoral Dynamics in European Regions

2007

Abstract We show that the distribution dynamics of productivity in European regions displays polarization with a nonlinear growth path. We investigate the factors explaining this behavior focusing in particular on sectoral composition. The β -convegence analysis reveals that initial shares of Manufacturing and Other Market Services have a nonlinear impact on growth, while spatial effects are not statistically significant. By decomposing the dynamics of aggregate productivity in terms of sectoral dynamics, we show that productivity in Manufacturing, Non Market Services, and Other Market Services does not converge, for the complex interaction of technological spillovers and specialization eff…

CONVERGENCE AND DIVERGENCE: A NEW APPROACH, NEW DATA, AND NEW RESULTS

2020

Recently, Penn World Tables include new data that enable calculation of total factor productivity in addition to output for a large set of countries. We use these new data to examine convergence and divergence across countries by applying a new approach, which differentiates between the dynamics of output and of productivity. Our empirical results lead to two main new contributions to the literature. The first is on the interpretation of “β-convergence” in “growth regressions.” It means that output per worker in each country converges to productivity but does not imply convergence across countries, since productivity tends to diverge from the global frontier. The second contribution is to t…

Convergence in OECD countries: technical change, efficiency and productivity

1998

The aim of this study is to analyze labor productivity convergence in the countries of the OECD over the period 1965-90. A non-parametric frontier approach is used to calculate the Malmquist productivity index. By breaking it down, the contribution to the growth of labor productivity of technical progress, of changes in efficiency, and of the accumulation of inputs per worker are quantified. Unlike other studies, the results obtained show that technical change has worked against labor productivity convergence, since it has always been greater in the countries with higher labor productivity. El trabajo tiene como objetivo básico analizar la contribución de las distintas fuentes del crecimien…

RENT CREATION AND RENT SHARING: NEW MEASURES AND IMPACTS ON TOTAL FACTOR PRODUCTIVITY

2019

International audience; This analysis proposes new measures of rent creation and rent sharing and assesses their impact on productivity on cross-country-industry panel data. We find first that: (1) anticompetitive product market regulations positively affect rent creation and (2) employment protection legislation boosts hourly wages, particularly for low-skill workers. However, we find no significant impact of this employment legislation on rent sharing, as the hourly wage increases are offset by a negative impact on hours worked. Second, using regulation indicators as instruments, we find that rent creation and rent sharing both have a substantial negative impact on total factor productivi…

The Random-Time Binomial Model

1999

In this paper we study Binomial Models with random time steps. We explain, how calculating values for European and American Call and Put options is straightforward for the Random-Time Binomial Model. We present the conditions to ensure weak-convergence to the Black-Scholes setup and convergence of the values for European and American put options. Differently to the CRR-model the convergence behaviour is extremely smooth in our model. By using extrapolation we therefore achieve order of convergence two. This way it is an efficient tool for pricing purposes in the Black-Scholes setup, since the CRR model and its extrapolations typically achieve order one. Moreover our model allows in a straig…

Convergence in the OECD: Transitional Dynamics or Narrowing Steady-State Differences?

2004

I. INTRODUCTION Research on growth and convergence has proceeded through several stages that can be described as a process of accommodating cross-country heterogeneity into the convergence equation. In the first stage, the world could be described as countries approaching to equal (absolute convergence) or to different (conditional convergence) steady states. In both cases--see Baumol (1986) Barro and Sala i Martin (1992), or Mankiw et al. (1992)--the assumption of parameter homogeneity of the underlying production function was assumed and not tested. Later, some researchers (Knight et al. [1993], Islam [1995], Durlauf and Johnson [1995], or Caselli et al. [1996], among others) began to cha…

Social progress around the world: trends and convergence

2022

Abstract This paper assesses social progress in 139 countries over the period 1995–2017 following the framework proposed by the Social Progress Imperative; a notable contribution is a composite index allowing for comparisons across countries and over time. The index considers 45 raw indicators covering three fundamental pillars of social progress: basic human needs, foundations of well-being, and opportunities. The results point to a marked improvement in social progress all over the world from the mid-1990s, although they also depict a highly polarized world. Cross-country convergence patterns are also investigated, revealing a reduction in the differences in social progress, largely drive…